1. 11-1

2. 11-2 Services Marketing Chapter 11 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 11-3 Chapter Goals McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Importance of services in advanced economies Nonbusiness services marketing Characteristics of services and their marketing implications Design of a services marketing mix Managing service quality Productivity and performance challenges of service marketers

4. 11-4 Definition of Services Identifiable, intangible activities that are the main object of a transaction designed to provide want-satisfaction to customers Identifiable, intangible activities that are the main object of a transaction designed to provide want-satisfaction to customers Supplementary Services support the sales of a good or service Supplementary Services support the sales of a good or service

5. 11-5 Goods-Services Continuum

6. 11-6 Scope of Services NonProfit For Profit Not For Profit

7. 11-7 Characteristics of Services Intangibility Perishability Heterogeneity Inseparability

8. 11-8 For Profit Services Customer Target Market Target Market Nonbusiness Client Provider

9. 11-9 Selecting Target Markets Buying Behavior Geographic Demographic Market Segmentation

10. 11-10 Product Planning Services Offering Product-Mix Strategies Product Features Differentiate Expand the line Expand the line Contract the mix Contract the mix Alter the service Alter the service Manage the life cycle Manage the life cycle Tangible object Tangible object Memorable slogan Memorable slogan Distinctive color scheme Distinctive color scheme CREATE A BRAND CREATE A BRAND

11. 11-11 Pricing Structure Pricing for Profit Firms Pricing for Nonprofits Markup Perishability Supply- Demand Supply- Demand Less important Client charges do not cover costs Client charges do not cover costs Willing to pay Contributions set by provider Contributions set by provider

12. 11-12 Pricing Strategies Discounts Flexible price One price Markup Non-price competition Segmentation and price Intense price competition Three levels of price competition

13. 11-13 Location Distribution System Channels of Distribution Inseparability Short simple Heterogeneity Number of middlemen Convenience Accessibility Distribution Facilities

14. 11-14 Promotional Program Advertising Personal Selling Customer-contact personnel Personal Selling Customer-contact personnel Sales Promotion Sales Promotion Inseparability Service Encounter Service Encounter Cause-related Incentives

15. 11-15 Managing Service Quality Compared to Expectations of the customer How work was performed Quality is defined by the customer Help formulate expectations Measure expectation level Service quality at or above expectation

16. 11-16 Future of Services Marketing Impact of Technology Increase Productivity Performance Measurement Prospects for Growth

17. 11-17 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Services For-profit services firms Not-for-profit services organizations Nonprofit organizations Intangibility Inseparability Heterogeneity Perishability Provider market Client market Service encounter Service quality